If a budget is cyclically balanced, the government should run a surplus when the economy experiences an expansionary gap

As disposable income ________ planned consumption expenditure ________

A) decreases; increases B) increases; decreases C) decreases; remains the same, since it is autonomous expenditure D) increases; increases E) increases; changes only if net taxes also change

Along the intermediate range of the aggregate supply curve, an increase in the aggregate demand curve will increase:

a. both the price level and real GDP. b. only real GDP. c. only the price level. d. real GDP and reduce the price level.